[nindalf]

How would trade retaliation even work? Software isn't that straightforward to tax. For example, say you 2 video games, one of which is Chinese owned (say League of Legends), the other is American owned (say Dota 2). Tell me what justified trade retaliation you would use to promote one over the other? Would you add a $0.01 tax to cosmetics?

You can't do it. Of course it doesn't matter to the CPC what Tencent does with this game, because games are inconsequential. But if this wasn't Tencent's LoL, but rather WeChat we were talking about? At that point CPC policies, including censorship will be applied by Tencent. And what "trade-retaliation" will you use then?